Mistakes are an inherent part of any company’s growth. Most of the time you learn the most from mistakes made in the past. Unfortunately, these judgment flaws come at a price, sometimes they can be pretty expensive. Which is why, though experience is the mother of all teachers, it wouldn’t hurt (your budget) if you had a good ol’ list such as this to give you a heads-up on what any business should avoid.
1. Hiring the Wrong Team
This error is considered by most to be the single most costly error in business. The wrong team won’t just hit you in your wallet, but it will also serve to deplete morale and may cause valuable employees to leave in search of greener pastures. As in a pickup game of basketball, it could be tempting to hire your friends but ask yourself – are they the right choice for my team’s chance at victory?
2. Evading Legal Assistance
Lawyers aren’t cheap, but businesses, especially as they become successful, open themselves up to possible legal action that can be back-breaking. Make sure consult a lawyer when it comes to contracts, or consider hiring a full-time paralegal employee who specializes in business practices to keep your company’s nose clean and its profits secure.
3. Skimping on Marketing Expenses
There’s no way around it – if you want to run a successful marketing campaign, you’ll have to spend money. Nothing is free. You may think social media is free – it’s not if you want it done right; or, you might think SEO is free – another myth. It takes money to make money and although some avenues of marketing offer a lower cost than others, they’ll require time and resources to be done right, neither of which is without its price.
If you’re not sure how much to allot to marketing, simply start with 10 to 20 percent of your targeted gross revenue. That will give you enough money to see some results, and will put you in a position to see if more is necessary, or if it is possible to make do with less.
4. Not Taking the Time to Understand or Invest in Technology
Technology is a huge asset to any business. With some careful research, you can discover business applications that can greatly streamline your efforts, enhance productivity and ultimately boost profits. Keep your ear out for new technological roll-outs and attend conferences to learn about products that may prove to be a huge asset to your business.
5. Holding Out for Perfect
Don’t wait for perfect when good will do. If you fall victim to this common mistake you’ll miss opportunities by simply not acting. Luck is a great friend to all business owners, but luck is dependent on an action. If you’re waiting around for something to happen you’ll miss the chance to take lady luck by the arm.